OPTION 

KEY TERMS AND CONDITIONS

1. If the project is approved, a Letter of Intent will be issued within 14 days validity.

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2. After approval, the Funding Company will receive a processing fee invoice of EUR 75,000 of which EUR 50.000 will be refundable if the loan is not delivered. -(Primary services include independent KYC and AML compliance checks completed on the Company/Project, the Underwriter’s risk assessment, financial due diligence, legal agreements and project site visit when applicable). The fees for the external Audit Firm will be paid by the funded Company.

3. A binding Tern Sheet will be issued and once it has been accepted and signed by both Parties, legal agreements will be prepared. In general, the funding will be available within 45-60 days of executing the legal agreements.

4. The funding is an unsecured loan (senior debt) for 100% of the project value. Once the legal documents have been signed by both Parties, the Company will transfer a 49% share equity in its Operating Company to the Funding Group free-of-cost.

5. As a shareholder of the Project Operating Company, the Funding Company will have a right to Board representation with proportionate voting rights as well as the right to:

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a) Appoint an independent Internal Audit Firm,

b) Be a member of the Audit Committee.

c) Be a member of the Corporate Governance and       Investment Committee.

6. The interest rate on the unsecured loan will be a fixed rate of 8.75% per annum for the first two years. From the third year onwards, the interest rate will be around 6% per annum. Interest is payable to the Funding Company monthly no later than the last working day.

7. The Funding Group deducts a 1% Loan Management Fee from each drawdown.

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8. The principal loan amount must be repaid in equal monthly instalments quarterly over the tenure of the loan. Principal Repayment commences 6-12 months after the first drawdown (a 6–12-month grace period for the principal repayment). However, monthly interest will still accrue during the grace period.

9. The tenure of the loan will be maximum 10 years and there is no penalty for early repayment.

10. Funding will be released to the Company as per an agreed and approved milestone-driven project drawdown schedule.

11. The first drawdown may not in principle exceed 20% of the total loan amount.

12. The full loan amount must be insured by the Company receiving the loan. The Payment Protection Insurance (PPI) Premium will be collected as 10% of each loan drawdown amount for the first 5 years.

13. The Loan Receiving Company must also agree to:

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➢ Implement a Cloud-based Financial System for remote access and consistent financial reporting.

➢ Allocate 1% (one percent) of net profits to Corporate Social Responsibility (CSR) activities –centrally coordinated and managed by the Funding Group.

Other Conditions

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- PBO-OBS Global Group reserves the right to reject any funding application without explanation.

- Applicants must undertake to inform us of any change.

- A Commission Agreement and an NCNDA must be signed.

Disclaimer​

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Neither the information nor any opinion contained in this website constitute a solicitation or a direct offer by PBO-OBS Global Advisory Group. These are solely for informational purposes and reflect the Terms and Conditions of various Third Party Partners with whom we work on a case-to-case basis. These Terms and Conditions may also vary from time to time depending on various factors where we do not have any control or influence and therefore these Terms and Conditions do not represent any final commitment. Clients must be aware of the need to update them and to confirm at the time of project application.